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Time Warner Cable, Inc'

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Geographic: Your six territories representing 13% of the market. Psychographic: Tech-savvy, above average education level, sufficient disposable ... – PowerPoint PPT presentation

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Title: Time Warner Cable, Inc'


1
Time Warner Cable, Inc.
  • The Maria Sharapova All-Stars

2
Time Warner Cable, Inc.
  • Henri Chen
  • Michael Kittle
  • George Skarpathiotakis
  • Timothy Thompson
  • Charles Whiteley III

3
Executive Summary
  • Becoming a complete communication gateway!

4
Advantage Tim Thompson
  • Current Market Situation

5
Market Summary
  • Demographic Above average income, significant
    and growing Hispanic market

6
  • Geographic Your six territories representing 13
    of the market
  • Psychographic Tech-savvy, above average
    education level, sufficient disposable income to
    enjoy leisure activities
  • Behaviors

7
Market DemographicHigh Median Household Income
County of LA
City of LA
Sources http//www.city-data.com/city/California.
html and http//www.losangelesalmanac.com/LA/l
a09.htm Using 2000 Census Data
8
Market Demographic Hispanic Market
All above figures in millions Source RAND
California
9
Market Geographic
10
Market PsychographicBachelors Degree or Higher
City of LA
Source http//www.city-data.com/city/California.h
tml
11
Market Behaviors
  • Good cable customer satisfaction (67)
  • Better Internet customer satisfaction (82)
  • Unavoidable Churn
  • Lack of knowledge of and about offerings

12
Market Needs
  • Entertainment from TV and movies
  • Current information and news
  • Broadband Internet
  • Simplicity in billing
  • Effective customer service
  • Variety of programming operations
  • Competitive pricing

13
Market Trends Growth
  • Static territories
  • Static population growth of 2
  • Static household growth of 1
  • Increasing percentage of Hispanic population and
    households
  • Increasing utilization of broadband Internet

14
SWOT Analysis
15
Competition
  • Satellite signal providers
  • Other Internet phone providers
  • Signal thieves
  • Other entertainment media

16
Product Offering
  • Cable and video products (VOD, premium, DVR)
  • High-speed Internet
  • Digital Phone

17
Macroenvironment
  • Economic and aging changes
  • Neutral industry outlook
  • (Standard PoorsMovie and
    Entertainment Sub-industry)
  • Technology advancement /-
  • Competitive Activity

18
Advantage Henry
  • Marketing Strategy - Objectives and Positioning

19
Marketing Objective
  • Improve analyzing marketing opportunities
  • Optimize new marketing strategies
  • Improve executions

20
Marketing Objective
  • Optimize target market segmentation
  • Maintain positive, steady growth
  • Increase number of new customers

21
Financial Objectives
  • Increase revenue
  • - a growth rate of 8.25, 311.9M annual
    revenue (2005)
  • Increase marketing expense
  • - an estimated 8.25, from the 2004 level of
    7M

22
Target markets
  • Hispanic population
  • Income levels
  • Educated customers
  • High income, health conscious individuals
  • Established suburban immigrants

23
Positioning
  • Complete communications gateway
  • Premier high-end home entertainment provider

24
Advantage George
  • Marketing Strategy Marketing Mix and Research

25
Marketing Mix
  • Strategy gt Tactics gt Programs
  • Increase profits while position TWC as a
    high-end, communications service provider.

26
Marketing Mix
  • Strategy gt Tactics gt Programs
  • Seek larger market share within three years by
    increasing new customers through increased
    awareness of products and benefits in an effort
    for increased product sales.
  • Decrease churn while increasing new customer
    base.

27
Marketing Mix
  • Strategy gt Tactics gt Programs

1. Larger Market Share gt New Customers gt Product
Sales
a. Redefining existing and creating new target
markets.
b. Additional involvement in industry
associations such as LA Consortium.
c. Retail stores as education and selling points.
d. Increase exposure through website.
e. Direct mail pieces through local newspapers.
f. Increase incentives for bundling.
g. Investigate into specialized programming that
would create product differentiation.
28
Marketing Mix
  • Strategy gt Tactics gt Programs

1. Decrease churn while increasing new customer
base.
a. Identify potential reasons for churn through
increased research of former customers.
b. Increased incentives for existing customers to
stay with current products.
c. Increase incentives for existing customers to
word-of-mouth advertise.
d. Increase incentives for existing customers to
remain with Time Warner Cable.
29
Marketing Mix
  • Strategy gt Tactics gt Programs

1. Decrease churn while increasing new customer
base.
No-Contract Contract
  • Discounted monthly rate for customers willing to
    pre-pay for their services.
  • Option to cancel at any time
  • If customer does opt-out, is charged full price
    for services, pro-rated over the amount used.

d. Increase incentives for existing customers to
remain with Time Warner Cable.
30
Market Research Finding
  • Income 60 _at_ 75,000
  • Education 98 gt high-school
  • One bill 98 said Yes
  • Door-to-door 25 said Yes

31
Proposed Marketing Mix
32
Advantage Charles
  • Financials and Implementation

33
Current Financials
34
Financial Forecasts
35
Survey
  • Research Questionnaire
  • 1. What is you zip code? _________
  • 2. What is your household income?
  • ? Less than 35,000 ? 3550,000 ?
    5075,000 ? gt75,000
  • 3. What is your level of education?
  • ? High-school ? College ? Masters/Post-graduate
  • 4. How long have you lived in your current
    address?
  • ? Less than 1 year ? 14 yrs ? 510 yrs ?10
    yrs
  • 5. Which of the following services do you
    subscribe?
  • ? VOD ? High-speed Internet ? phone service
  • ? cable/satellite ? DVR
  • 6. Who is your phone service provider?
  • ? Sprint ? ATT ? SBC ? Time Warner Cable ?
    Other
  • 7. Who is your Internet service provider?
  • ? AOL ? Yahoo ? Road runner ? Others
  • 8. Who is your cable/satellite provider?
  • ? AOL ? Direct TV ? Dish network ? Others
  • 9. Would you appreciate having one company handle
    all your home information/ entertainment needs?

36
Survey Results
37
Implementation
  • Task 1 Conduct market research through surveys
    of current and prospective customers.
  • Goal Confirm and expand understanding of
    market.
  • Task 2 Reallocate resources dedicated to
    door-to-door marketing campaign.
  • Goal Increase cost-efficiency and efficacy of
    marketing campaign.
  • Task 3 Implement kiosks staffed by TWC sales
    personnel in electronics retail outlets.
  • Goal Increase mind-share and compete with
    on-site satellite representatives.
  • Task 4 Design and implement promotions in
    Spanish in all marketing media using programming
    appealing to the Latin market like soccer and
    Telemundo.
  • Goal Take advantage of expanding Latin market
    to increase revenues.
  • Task 5 Measure success of campaign in terms of
    increased subscriber base as compared to current
    subscriber base.
  • Goal Increase subscriber base by 5.
  • Task 6 Measure success of campaign to broaden
    existing subscriber portfolios by examining
    average customer monthly expenditure increase due
    to new campaign.
  • Goal Increase average customer portfolio by 5.

38
Contingency Planning
  • Threat Satellite develops bundling of services
    through partnerships or technological innovation.
  • Solution Continue product innovation and
    increased network and VOD offerings.
  • Prevention Rapidly implement marketing campaign
    to reduce market share of satellite companies
    reducing their overall threat level.
  • Threat Netflix and Blockbuster new market
    offerings decreases revenues through lower use of
    premium channels and VOD.
  • Solution Expand VOD offerings to better compete
    with the number of titles offered by these
    companies.
  • Prevention Use advertising to stress the
    importance of the ease and timeliness of VOD
    platform.
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